The U.S. economy posted another solid though slightly disappointing period of growth in the third quarter, propelled higher by strong consumer spending that has defied expectations for a slowdown.
The economy accelerated at a 3% pace in the second quarter.
Personal consumption expenditures, the proxy for consumer activity, increased 3.7% for the quarter, the strongest performance since Q1 of 2023.
The release comes with the Federal Reserve poised to lower inflation rates further despite the seemingly strong economy and inflation that remains above target, though far from its peak in mid-2022.
Markets widely expect the Fed to cut another quarter percentage point off its benchmark short-term borrowing rate when policymakers conclude their two-day meeting on Nov. 7.
Persons:
Dow Jones
Organizations:
Gross, Commerce Department, Federal Reserve
Locations:
U.S
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